Texas Senate Bill SB117

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/17/11
• Introduced: 11/8/10
• Voted on by Senate: 3/24/11
• Refer: 1/31/11
• Report Pass: 3/17/11
• Engrossed: 3/24/11
• Refer: 4/28/11

Caption

Relating to allowing municipally owned utility systems in certain cities to fund a program to aid low-income residents in paying their bills.

Impact

The legislation proposes a significant shift in how municipal utilities can utilize their revenue. By allowing utility systems to consider funding for bill payment assistance as a first lien against their operational revenue, the bill aims to create a safety net for low-income customers. This change is especially pertinent in the context of rising utility costs and economic challenges faced by many households, ensuring that those in financial distress can maintain essential services.

Summary

SB117 seeks to amend the Texas Government Code to authorize municipally owned utility systems in cities with a population exceeding one million to provide funding for programs assisting low-income residents in paying their utility bills. The bill permits these utility systems to allocate a portion of their operational revenue as a necessary expense to support this assistance program. The primary intent behind this initiative is to prevent utility disconnection for vulnerable populations who are struggling to meet their financial obligations.

Contention

Discussions surrounding SB117 may have included concerns about the fiscal implications for municipal utilities and the potential for increased dependency on assistance programs. Supporters argue that addressing the needs of low-income residents is crucial, particularly in times of economic hardship, while opponents might raise questions about the sustainability of such funding models. The bill's passage could set a precedent for other cities in Texas and influence broader policies related to public utility management and low-income support.